Hello. I'm Dan Lyles with Lyles Insurance. And in this video, we're going to help drivers who need auto insurance but don't own a vehicle. As you're probably aware, you can't buy regular auto insurance unless you have a vehicle to insure. So if you need insurance, how do you do so without a vehicle? This video is going to help you with that.
Why would a driver who doesn't own a vehicle need auto insurance? Well, there's a couple reasons. Sometimes it's an employment requirement. But most often it's because a driver needs a state filing, which is usually an SR22. Virginia drivers also have FR44 filings, and Indiana drivers sometimes see SR50 filings. And what happens is, when a driver gets their license suspended, the state motor vehicle bureau will require them to carry one of those filings for three years. And this reinstates their license and keeps it valid. None of these filings are actually auto insurance. They're just a state filing that attaches onto an auto insurance policy. So if you don't have a vehicle to insure on a regular policy, your best option is to buy what's called a Named Operator auto insurance policy. It's also known as a non owner’s policy. And any of the above three state filings will attach onto it.
Let me briefly go over the basics of a named operator auto insurance policy. It's a special type of policy that only offers secondary coverage, meaning it's not primary auto insurance like a regular auto insurance policy is. So when you drive someone else's vehicle, their regular auto insurance policy is your main coverage. A named operator policy only pays out on a claim if the owner’s auto insurance policy didn't have enough coverage to pay for all the damages. A named operator policy also does not offer any coverage on a vehicle that you own, or any vehicle owned by anyone in your household.
Coverage is limited on a named operator policy. Unlike a regular auto insurance policy which offers five major parts, a named operator policy only offers three of them: Which is liability coverage, uninsured or under-insured motorist coverage, and medical payments coverage. The two major parts of an auto policy that a named operator policy does not offer is Comprehensive and Collision coverage. Which of course some people put together, call it full coverage. It's the actual physical damage coverage on the vehicle you're driving. That's not available on a named operator policy.
As I mentioned earlier, a named operator policy won't cover you driving your own vehicle. So what happens if you take out a named operator policy and then later on buy a vehicle? Well, the good news is that a named operator policy can easily be converted into a regular auto insurance policy once you have a vehicle to insure. It just takes a few minutes and a call to your agent to get it taken care of. And if you need a state filing, it won't affect your filing in any way.
So where do you find a named operator policy? Because not all companies offer them. The best place to look is an independent auto insurance agent who has multiple companies to quote you with. That will save you the trouble of shopping around for the lowest rate. Let them do the dirty work for you. And for those of you who live in Ohio, Indiana, Virginia, Michigan, Pennsylvania or West Virginia, if you'd like a quote, I will be very happy to help you or answer any questions you have. I've put a link to my website for named operator insurance there at the bottom. Or if you'd rather give me a call, I've also included my phone number. Thanks for watching. And have a great day!
Link from video: Named Operator Page
Dan Lyles is an Independent Insurance Agent serving Ohio, Indiana, Michigan, Pennsylvania, Virginia and West Virginia..